Appendix 1: Detailed Findings for Accredited Persons

HP Open MindIn this Appendix we present a series of charts of key findings from the AP survey. It is important to note that these findings are based on a small sample (n=50) of businesses that participate in the ESI scheme. While this represents around two-thirds of all APs, the population of APs is a very heterogeneous one, ranging from micro businesses (owner/operators running trades or energy efficiency operations) through to large national energy retailers and manufacturers. Sampling such a population can result in data with considerable variability, since the inclusion or exclusion of a particularly large or different AP could conceivably skew results considerably.

In total 18 APs recorded their main ESI activity as solar water heating, followed by 17 for lighting, 5 for gas water heating, 3 each for shower roses and ducted space heating, and 2 for ceiling insulation.

Drivers and barriers

The following charts relate to AP perceptions of the consumers' side of the ESI scheme, in terms of their proactivity in seeking participation, the key drivers and barriers that encourage or discourage their participation, and their price limits in relation to upgrading to energy efficient technologies.

Chart 1.1. Consumer proactivity

 Consumer proactively. This is a bar chart with a small yellow box at bottom saying

A2. And from your experience with (MAIN ACTIVITY STATED AT S5), what would you say the approximate split is between the proportion of consumers who proactively enquire about the ESI scheme versus those who your business initiates the process of offering the ESI? Please divide 100% between the two options. For example, if you feel that 70% of the time you offer the ESI to consumers, you would assign 70% to that option and 30% to consumers who proactively enquire.

Base: Accredited persons, n=45

Chart 1.2. Split between home owner and tenant households

 Split between home owner and tenant households, this is a bar chart with a small yellow box at the bottom saying

A3. And from your experience with (MAIN ACTIVITY STATED AT S5), what would you say the approximate split is between the proportion of installations under the ESI scheme in households where the owner lives in the residence versus where the residence is rented? Please divide 100% between the two options. For example, if you feel that 70% of the time the owner lives in the residence, you would assign 70% to that option and 30% to rented premises.

Base: Accredited persons, n=45

Chart 1.3. Consumer motivations

 Consumer motivations. This is a bar chart showing Most successful consumer influences. There are 7 consumer influences. To reduce energy bills 93%. Discount provided on full product cost 87%. To do their bit for the environment 73%. Because having the product installed made it convenient to upgrade 64%. Free product being installed 58%. Something else 2%.

A1. Thinking about your experience of the things that influence most consumers to take up (MAIN ACTIVITY STATED AT S5) under the ESI scheme, please tell me which you feel have been most successful in encouraging households to take part?

Base: Accredited persons, n=45

Chart 1.4. Consumer barriers

 Consumer barriers. This is a bar chart showing Perceived main consumer barriers. There are 11 consumer barriers. Can't afford to 67%. Lack of information on what to do/which energy efficient product to buy 64%. Lack of time to investigate or act 60%. Not a priority for their household 53%. The government doesn't provide enough financial incentive 49%. Benefit of reducing energy bills not worth the cost of upgrading to the more efficient product 49%. Had not thought much about improving energy efficiency from that particular product 44%. Benefits not worth the hassle and effort 40%. Seems pointless as other people aren't doing anything 29%. Something else 16%. None of these 2%.

A4. Now thinking about your experience of the things that initially prevent consumers taking up (MAIN ACTIVITY STATED AT S5) (that they subsequently take up under the ESI), please tell me what you feel the main barriers are.

Base: Accredited persons, n=45

Chart 1.5. Perceived reasons for not participating in ESI

 Perceived reasons for not participating in ESI. This is a bar chart with 10 reasons for not participating in ESI. Additional payment required to upgrade 64%. Confused by offer 60%. Not a priority for their household 53%. Lack of time to consider offer 49%. Benefits not worth the hassle and effort 49%. Put off by the paperwork required 49%. Lack of trust in the provider 44%. Benefit of reducing energy bills not worth the cost of upgrading to the more efficient product 38%. Something else 4%. None of these 4%.

A5. And now thinking specifically about consumer take up of energy efficient products and services as part of the ESI scheme, what do you think are the main reasons why consumers don't participate when offered a product? Base: Accredited persons, n=45

Chart 1.6. Highest Prices consumers are prepared to pay for upgrades

 Highest Prices consumers are prepared to pay for upgrades. This is a bar chart with a yellow box at the top of it saying

A6. In your experience, what is the most you feel consumers are generally prepared to pay to upgrade to (MAIN ACTIVITY STATED AT S5)? Please think about the net cost after taking into account the incentive they receive.

Base: Accredited persons whose main activities are not efficient lighting or efficient shower roses, n=28

Impacts of the ESI scheme on participating businesses

The charts that follow present a range of indicators of AP perceptions and stated impact on their businesses of participating in the scheme, including impact on turnover, employment, investment, and technology.

Chart 1.7. Impact of the ESI scheme on business foundation and turnover

 Impact of the ESI scheme on business foundation and turnover. There are two graphs the first is a pie chart called Whether business established as a result of ESI scheme which shows 24% as yes and 76% as No. The second is a bar chart which shows Proportion of business turnover attributed to ESI scheme. There are 8 different business turnovers. Total Sample 20%, Efficient lighting 32%, Efficient solar water heating 11%, efficient gas water heating 11%, efficient shower roses 7%, Efficient ducted space heating 5%, Efficient non-ducted space heating 70%, Ceiling insulation 15%.

(Click on image to view a larger version)

B1. Did you establish your business as a result of your participation in the ESI scheme?

B2. What would you say the approximate proportion of your business turnover is that can be attributed directly to [IF AP: installations as part of; IF MANUFACTURER: products manufactured for] the ESI scheme?

Base: All respondents, n=50

Chart 1.8. Impact of the ESI scheme on the mix of business activities

 Impact of the ESI scheme on the mix of business activities. This is a pie chart showing whether ESI scheme impacted change in business activity mix. Yes 38%. No 62%.

B3. And has participation in the ESI scheme led to your business changing the mix of activities that it is engaged in?

Base: All respondents, n=50

Chart 1.9. Number of staff working on the ESI scheme

 Number of staff working on the ESI scheme. There are two bar graphs. The first bar graph shows No. of staff working full time on ESI scheme. None 28%, 1 to 5 50%, 6 to 10 12%, 11 to 20 4%, over 20 6% and the Mean is 5.1. The second graph shows No. of staff working part time on ESI scheme. None 46%, 1 to 5 34%, 6 to 10 8%, 11 to 20 6%, Over 20 6% and has a Mean of 8.7.

(Click on image to view a larger version)

B4a. And thinking about people employed by your business, please could you tell me how many staff work full time on the ESI scheme. Please include management and administration staff.

B4b. And please could you tell me how many staff work part time on aspects associated with the ESI scheme. Please include management and administration staff.

Base: All respondents, n=50

Chart 1.10. Occupations of staff working on the ESI scheme

 Bar chart 1.10 shows the response to question B5. Occupations of staff working on the ESI scheme: Managerial/Policy 48%, Skilled tradesperson (e.g. plumbers, electricians) 46%, Unskilled/labourers 6%, Clerical/administrative staff 64% and Semi skilled (e.g. vocational trained installers) 26%.

B5. And thinking about the staff in your business that work on the ESI scheme, which occupations would you classify them under?

Base: All respondents, n=50

Chart 1.11. New staff hired to work on the ESI scheme

 Pie graph for chart 1.11 shows the response to question B6. Have you hired new staff specifically to work on the scheme since it started in 2009? Yes 30% and No 70%. Bar chart 1.11 shows the response to question B7. Approximately how many new staff have you hired specifically to work on the ESI scheme? Response: 1 to 3 staff hired 47%, 6 to 10 staff hired 20%, 11 to 20 staff hired 27%, over 20 staff hired 14%.

B6. Have you hired new staff specifically to work on the scheme since it started in 2009?

Base: All respondents, n=50

B7. Approximately how many new staff have you hired specifically to work on the ESI scheme?

Base: Respondents who hired new staff for the ESI scheme, n=15

Chart 1.12. Investment and technology development arising from the ESI scheme

 Pie graph for chart 1.12 shows the response to question B8. Has your business needed to invest in any new products, machinery or systems to facilitate your participation in the ESI scheme? Yes 66% and No 34%. Pie graph for chart 1.12 shows the response to question B10. Has your involvement in the ESI scheme supported the development of any new technology or services? Yes 22% and No 78%. Pie graph for chart 1.12 shows the response to question B12. Has your business needed to raise capital to facilitate your participation in the ESI scheme? Response: No, none required 80%, Yes, a business loan 8%, Yes, a personal loan 12%.

B8. Has your business needed to invest in any new products, machinery or systems to facilitate your participation in the ESI scheme?

B10. Has your involvement in the ESI scheme supported the development of any new technology or services?

B12. Has your business needed to raise capital to facilitate your participation in the ESI scheme?

Base: All respondents, n=50

Costs and benefits of participation in the ESI scheme

The charts below present findings in relation to the destination buyers of VEECs, and the proportion of prices received for VEECs that can be attributed to the incentives that APs need to provide to consumers to achieve installations, together with APs assessment of the costs and benefits of participating in the scheme overall.

Chart 1.13. Main buyers of VEECs

 Pie chart 1.13 shows the response to question B13. Which of the following is the main buyer of VEECs that you generate or purchase? Forward contract with retailer 4%, forward contract with intermediary – less then 2%, sell on spot market to retailer 27%, sell on spot market to intermediary 36%, don't generate or buy VEECs 27% and Other 4%.

B13. Which of the following is the main buyer of VEECs that you generate or purchase?

Base: Accredited persons, n=45

Chart 1.14. Proportion of price attributed to consumer incentive/discount Bar graph 1.14, shows the response to question B14: Proportion of price attributed to consumer incentive or discount. Total sample 52%, Efficient lighting 60%, Efficient solar water heating 46%, Efficient gas water heating 66%, Efficient shower roses 70%, Efficient ducted space heating 27%, Ceiling insulation 25%.

B14. Thinking specifically about the price you receive in the market for certificates for (MAIN ACTIVITY STATED AT S5), approximately what proportion of that price that you receive can be attributed to the incentive or discount that consumers receive for the installation?

Base: Accredited persons, n=45

Chart 1.15. Benefits and costs of ESI scheme participation

 Pie graph 1.15 represents the response to question B17 - when you weigh up the benefits to your business of participating in the ESI scheme versus the costs, which one outweighs the other? Response: 30% the costs outweigh the benefits, 70% the benefits outweigh the costs. Bar graph 1.15 represents the response to question B17 - when you weigh up the benefits to your business of participating in the ESI scheme versus the costs, which one outweighs the other? For manufacturers 100% of the benefits outweigh the costs and 0% of the costs outweigh the benefits. For accredited providers 67% of the benefits outweigh the costs and 33% of the costs outweigh the benefits.

(Click on image to view a larger version)

B17. All things considered, when you weigh up the benefits to your business of participating in the ESI scheme versus the costs, which one outweighs the other?

Base: All respondents, n=50

Although there were a number of surveyed businesses that claimed to have never generated any VEECs, such businesses were still relatively positive about the scheme; around six in ten consider the benefits of participation to outweigh the costs. Their reasons for not actively participating are not known, but appear not to have resulted from a negative judgement of the nett benefits of participation.

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Page last updated: 24/06/20